Tax Lien Lawyers in Rocky Mount
A "lien" in Rocky Mount, Virginia is a type of security interest that one person or entity has in someone else's property. Normally, a lien is created by a court, to secure payment of a debt. A lien gives its holder many rights in the property that is subject to it, including the right to seize the proceeds if the property is sold, and priority access to the property, in front of other creditors.
A "tax lien" is simply a lien placed on a piece of property by the state or local government, to secure the payment of back taxes. A tax lien in Rocky Mount, Virginia can arise to secure the payment of any federal or state tax, including income tax, estate tax, or gift tax.
However, a tax lien in Rocky Mount, Virginia will be ineffective if the debtor doesn't own any valuable property to encumber with a lien. As with any debt, the creditor can't collect if the debtor doesn't have any assets. However, a tax lien can be applied to property that the taxpayer acquires after the lien goes into effect.
Tax Lien Procedure in Rocky Mount, Virginia
In Rocky Mount, Virginia, the process for creating a tax lien is fairly uncomplicated. First, the tax authorities determine that a taxpayer truly owes taxes that they haven't paid (that they're delinquent in their taxes).
Then, the taxpayer is sent a letter with a "notice and demand," which informs the taxpayer that the IRS has determined that they owe back taxes, and that they have a short period of time (typically 10 days) to pay them without incurring a penalty.
If the back taxes are not paid before the deadline is up, the lien will typically take effect immediately, with no further action by the IRS or Virginia tax agency, giving them all the rights in your property that the law permits.
However, if the federal government does not seek to enforce a tax lien in Rocky Mount, Virginia within 10 years of imposing it, federal law dictates that the lien automatically expires. This is effectively a statute of limitations on a tax lien, meant to encourage the federal government to collect its taxes in a reasonable period of time, and ensure that property is not encumbered by a lien forever.
How Can a Rocky Mount, Virginia Tax Lien Lawyer Help?
If you are notified by the government that you owe back taxes in Virginia, and that they are going to pursue a tax lien to collect their money, things can get very intricate, quite quickly.
Thankfully for you, tax lawyers in Rocky Mount, Virginia are experts at dealing with matters such as these, and can make sure your rights are protected, and advise you on the best way to proceed, if you are facing the prospect of a tax lien.